Japan stocks track Wall St higher; ex-dividend stocks in demand

SumCo

28/09/2020 04:26

TOKYO, Sept 28 (Reuters) - Japanese stocks gained on Monday,
tracking Wall Street's tech rally in the previous session, with
sentiment aided by an appetite for stocks that were set to go
ex-dividend this week.
    The benchmark Nikkei share average  .N225  rose 0.72% to
23,371.70 by the midday break and the broader Topix  .TOPX 
gained 0.78% to 1,646.93. All but four of the 33 sector
sub-indexes on the Tokyo exchange traded higher.
    Investors took cues from Wall Street's positive finish on
Friday when main indexes gained more than 1%, while in Japan,
analysts cited demand for index futures by index and mutual
funds lifting sentiment.  .N 
    But U.S.-China tensions capped gains after reports the U.S.
had sent letters informing companies that suppliers of certain
equipment to China's Semiconductor Manufacturing International
Corporation  0981.HK  must apply for individual export licenses.
 urn:newsml:reuters.com:*:nL8N2GN07T
    Amid the tech-related dispute between the two nations,
chipmaker Kioxia Holdings Corp  6600.T  postponed plans for what
would have been Japan's largest initial public offering this
year.  urn:newsml:reuters.com:*:nL4N2GO0UV
    This triggered a sell-off in Toshiba Corp  6502.T  stocks,
which had intended to return most of the IPO proceeds to
shareholders, dropping more than 8% in early session before
retracing some losses to trade 3.15% lower by the recess. 
    Other semi-conductor shares also declined. Sumco Corp
 3436.T  fell 1.02%, while Tokyo Electron  8035.T  and Advantest
Corp  6857.T  slid 1.41% and 1.75%, respectively.  
    Stocks that outperformed included Nitori Holdings  9843.T ,
which climbed 0.61% after the interior goods company announced
upward revisions to earnings forecasts.  urn:newsml:reuters.com:*:nXB07RUKBW
    Elsewhere, the Mothers Index  .MTHR  of start-up firm shares
fell 0.41%.

 (Reporting by Eimi Yamamitsu; editing by Uttaresh.V)
 ((eimi.yamamitsu@thomsonreuters.com;))